Palm oil (FCPOc3) may test resistance at 4,587 ringgit per metric ton, a break above which could lead to a gain into the 4,604-4,619 ringgit range.
A small wave c from 4,632 ringgit seems to have stopped around a key support at 4,513 ringgit, its 61.8% projection analysis.
The pause indicates a completion of this wave. A bearish target at 4,440 ringgit has been temporarily aborted. It will only be resumed when the market breaks 4,513 ringgit.
A drop below 4,536 ringgit may extend toward the 4,485-4,513 ringgit range. On the daily chart, the contract managed to stabilize around a support at 4,524 ringgit.
It could be too early to expect a continuation of the uptrend toward 4,675 ringgit. However, the chance has increased a lot.
A break below 4,524 ringgit could open the way toward 4,403 ringgit.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are exclusively published on the Workspace platform - London Stock Exchange product.
** No information in this analysis should be considered as being business, financial, or legal advice. Each reader should consult their own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses.